Tax Plans Pave Way for Massive Cuts to Medicare, Medicaid, Social Security

http://www.truth-out.org/news/item/42811-tax-plans-pave-way-for-massive-cuts-to-medicare-medicaid-social-security?mc_cid=512802793c&mc_eid=9672eb134c

The next step, according to Ryan, is cutting spending. And while Congress hasn’t gotten that far yet, the agenda is clear. If a version of the tax plan passes, the next major item of business in Congress will likely include major cuts to Medicare, Medicaid and Social Security.

Read My Lips: No New Jobs

The entire tax plan is built around one premise: that cutting taxes causes the economy to grow and creates jobs. The problem is, this doesn’t appear to be true.

This time, “welfare reform” won’t just target low-income mothers; it will mean drastic cuts to Medicare, Medicaid and Social Security.

study from the University of Pennsylvania’s Wharton School of Business found that additional economic growth due to the tax plan would be miniscule — less than a tenth of a percent per year in the near term. That’s not the kind of growth the economy needs to produce more, or better-paying jobs.

Meanwhile, a study from the Institute for Policy Studies found that corporations that paid lower tax rates actually cut jobs — while passing the gains on in the form of higher CEO pay.

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